Irish consumer sentiment slipped marginally to hover at a 22-month low in August as respondents said they expected to further cut back on major purchases in the coming months, a survey showed on Thursday.
The KBC Bank Ireland consumer sentiment index fell a touch to 53.4 from 53.7 in July, its sixth decline in seven months, having stood at 81.9 in January.
The slight weakening was driven by a softer outlook for the jobs market, for household finances over the next 12 months and a larger pullback in spending plans.
While confidence is at its lowest point since the onset of the COVID-19 pandemic and with retail sales also falling, strong employment, tax returns and service sector data suggest parts of the economy are coping with near 40-year high inflation.
Finance Minister Paschal Donohoe said last week that the economy is continuing to perform strongly and remains set to grow in line with expectations that were lowered in April.
Grocery inflation in Ireland reached 7.7% in the 12 weeks to 10 July 2022, recording its highest level since August 2008, data from Kantar showed.
Consumer spending on take-home grocery sales fell by 3.1% in the period, slowing by 0.9% in the latest four weeks.
In the UK, grocery inflation hit 11.6% in August, the highest level since at least 2008, adding £533 ($642) to annual bills during the worst cost of living crisis in decades, industry data showed.
News by Reuters, additional reporting by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.